Question

In general, income inequalities tend to be larger in poorer countries. As countries develop the personal distribution of income tends to become more equal. Why do you feel this may be the cose?

Answer 1

It can be mentioned that as the countries get to develop what happens is that there will be more revenue generated and this actually leads to redistribution of income from the government as the revenues collected would be through progressive taxation scheme and redistributed in way that the poor are given the preference first and with this the distribution tends to equalise or reduce the income inequality all in all.